Sanjay Kumar Mishra (Accounts Officer) (41 Points)
15 December 2016How to apply Rule-6 if we have not maintaining separate books of accounts of inputs and input services for the production of Bagasse which is a by product of sugar and we donot want to pay it @ 6% of Exempted goods, we want opt for second option i.e. computation method.
Please guide, i will be thankful to you.
Thanks
PARTH SHAH
(Student CA Final )
(29 Points)
Replied 19 December 2016
Hello Sir,
Firstly for execising any of the option firstly intimate the department and option is for all the product and during the financial year you can not withdrwal option.
If you are not avail option under Rule - 6(3)(i) then you can exercise option under Rule - 6(3)(ii).
Under Rule - 6(3)(ii) option follow following procedure.
T = Total Input / Input Service Credit
A = Inputs / Inputs services which are exclusively used in exepmted product then this input / inputs servic credit are called ineligibal credit.
B =Inputs / Inputs services which are exclusively used in Dutiable product then this input / inputs servic credit are called eligibal credit.
T = C - (A+B)
Now ,
D = E / F * C
Where , E = Total Value of Exempted Goods and service during preceeding Financial year
F = Total value of Exemped Goods and service , Non Exempted Goods and Service , Taxable Service and Dutiable Goods during preceeding Financial year.
Every month use above formula and revesed the amount of cenvat credit in 5th of Next month otherwise pay 15% Interest per annum.
At the end of the Financial year calculate through actual sales and compare with provisionally revesed cenvat.
D = E / F * C
Where , E = Total Value of Exempted Goods and service during Financial year
F = Total value of Exemped Goods and service , Non Exempted Goods and Service , Taxable Service and Dutiable Goods during Financial year.
and if Actual Revesal of Cenvat amount is Short then short amount revesed up to 30th June of financial year. and if excess then take cenvat credit.
Regards
CA Parth Shah
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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